Interview with Andreas Bauer from Hypos e.V.: Leipzig's path to green energy

GW: What are Hypos' main goals and mission? What are your main tasks?

AB: Basically, the current goals and missions of Hypos and the Hydrogen Scout are similar. Previously, Hypos has been working over the last 10 years to lay the foundations to support the ramp-up of the hydrogen economy. This involved a great deal of research work, with 34 research and development projects initiated and supported with around 45 million euros in funding. The knowledge gained was the basis for realising implementation projects. A good example of this is the project in Bad Lauchstädt.

For a good year now, the focus has been shifting towards concrete application projects. One result is the "Hydrogen Scout" project. This was developed together with the city of Leipzig to support and advise companies in Leipzig on defossilisation using green hydrogen.

GW: What makes Central Germany unique in terms of hydrogen compared to other regions in Germany?

AB: The region already has a lot of experience with hydrogen as a raw material in the chemical industry and a pipeline around 100 kilometres long from Bitterfeld to Leuna, one of the largest consumers of hydrogen in Germany. With the construction of the core network, the Leipzig region is expected to be one of the first to be supplied with green hydrogen via a pipeline from 2027. This infrastructure and existing expertise give us a significant advantage.

GW: What does your day-to-day work look like?

AB: The "Hydrogen Scout" project was launched in March and the first few weeks were mainly spent setting up and publicising the project. Our main task is to support companies with the introduction of hydrogen projects. We have defined work packages and objectives with the City of Leipzig in order to position our consultancy services in a targeted manner. On 5 September, there will be a business dialogue at the BMW plant in Leipzig, where we will inform companies about the current status of the hydrogen economy, infrastructure expansion, sources of supply for green hydrogen, price developments and funding opportunities.

One focus of our work is to reach out to SMEs in Leipzig that have had little contact with hydrogen to date and explain the opportunities and benefits to them. We want to create a broad awareness and offer practical support by both providing information and actively receiving feedback and needs from the business community.

GW: What current trends and developments do you see in the hydrogen economy that are particularly relevant for the Leipzig region?

AB: There are two main applications for green hydrogen that are particularly relevant for the Leipzig region: first and foremost as a raw material in the chemical industry in terms of the quantities required, but also for energy use for mobility, for generating process heat and as a storage medium for renewable energies.

Hydrogen is already used as an important raw material in the region's chemical industry, and switching to green hydrogen is the only way to defossilise this industry.

The use of hydrogen as an energy source also offers numerous possibilities. In mobility, hydrogen will play a proportionate role where the battery concept is superior to electric vehicles, in particular for lorries, buses or municipal waste disposal vehicles.

By storing surplus electricity from wind and solar power plants in the form of hydrogen, we can ensure a continuous energy supply. This is particularly important in order to be prepared for dark doldrums, i.e. for periods when the sun is not shining and the wind is not blowing. In this way, we can increase security of supply and reduce dependence on fossil fuels.

The challenge is to put these applications into practice in a technically and financially viable way. This requires investment in infrastructure, such as pipelines and refuelling stations, as well as continued research and development. At the same time, we need to develop business models that make the use of green hydrogen economically attractive.

At Hypos, we are working on bringing these diverse application possibilities to companies and supporting them in their implementation.

GW: How has the hydrogen economy developed over the last 5 years? What do you expect for the coming years?

AB: We are at the beginning of the transition phase from individual test or pilot projects to industrial or market-based application, i.e. the market ramp-up. In 2021 and 2022, the topic even experienced a real hype, especially on the stock markets. Numerous companies are trying to establish and assert themselves on the market.  In the meantime, it is no longer just about pilot projects, but about the actual distribution of hydrogen from imports or electrolysis plants via a European pipeline network. To this end, HYPOS, Metropolregion Mitteldeutschland, Infracon and the DBI Group have already carried out a distribution network study for the second time, building on the core network for Central Germany and providing a concrete network plan based on reported requirements.

Another outstanding example is the BMW plant in Leipzig, which is already using hydrogen in intralogistics for series production. The hydrogen is currently still being delivered by lorry, but a pipeline connection is urgently needed in order to operate the drying process in the paint shop with green hydrogen as planned. This shows that the development is becoming concrete and tangible. In the next 5 to 10 years, we expect new electrolysis sites to be built and increasing networking via pipelines. Of course, there are still challenges such as complex authorisation procedures and necessary legislative changes, but I am convinced that these will be resolved step by step.

As with many new technologies, there will be difficulties and stumbling blocks at the beginning, but with increasing experience we will overcome these. It is a gradual process, but we are making steady progress.

GW: What solution or approaches is Hypos pursuing to overcome the current challenges?

AB: One specific task of the Hydrogen Scout is, for example, the creation of an application-oriented authorisation guideline. There are already guidelines in various federal states, but they are often very extensive and difficult to use. Our aim is to develop a user-friendly guide for Leipzig and Saxony that provides companies with a quick overview.

This guide should contain clear and comprehensible information about the necessary steps, specific contact persons and authorities as well as relevant laws and regulations, basically a step-by-step guide to authorisation procedures. In this way, we want to lower the hurdles for companies and make it easier for them to get started with hydrogen projects. By making the authorisation process more transparent and accessible, we hope to attract more companies to the hydrogen economy and drive development in the region.

GW: From your perspective, how important are cooperation and partnerships for the success of the hydrogen economy?

AB: In my view, cooperation and partnerships are absolutely essential for the success of the hydrogen economy. In many areas, various organisations, associations and companies are working towards similar goals. We can learn from each other and utilise synergies through networking and coordination. It is particularly important that companies that have already gained experience share their knowledge in order to ensure simultaneous and harmonised development.

HYPOS plays an important role in this by bringing together a broad base of companies and stakeholders that have various points of contact with the hydrogen economy. Our task is to inform and involve these players and promote dialogue.

Another good example of successful partnerships is the Bad Lauchstädt energy park, which was realised through the collaboration of various stakeholders. The distribution grid study, which is being planned and prepared in great detail, also shows how important such collaborations are. This project is unique in Germany in terms of its size and is an important step in effectively driving forward the ramp-up of the hydrogen economy - a lighthouse project, so to speak.

Such partnerships are crucial to creating a functioning basis for the hydrogen economy in the next 10 to 20 years. They enable us to overcome challenges together and drive development forward efficiently.

GW: What role do politicians play in promoting and regulating the hydrogen economy from your perspective?

AB: Politics plays a central role in promoting and regulating the hydrogen economy. One of the most important tasks is to create long-term reliability. Plans, laws and funding opportunities must remain in place for the next 10 to 15 years in order to give companies and investors planning security.

When working on projects, there is always a need for new legislative action. One specific example of necessary legislative changes is the transport of hydrogen. Currently, hydrogen may not be transported as hazardous goods in battery or hydrogen-powered lorries. This regulation is counterproductive and prevents the use of environmentally friendly means of transport. This has been recognised and the German Hydrogen Association, among others, is already campaigning for a change to this regulation.

In addition, authorisation procedures must be simplified and accelerated so that projects can be implemented more quickly. Politicians must take swift and targeted action to remove existing obstacles and actively support the development of the hydrogen economy.

GW: In your opinion, what significance does the work of Invest Region Leipzig have for the development of the hydrogen economy in our region?

AB: Invest Region Leipzig plays an important role in arranging business contacts and facilitating economic access to Leipzig. The cooperation is very important in order to utilise Leipzig's locational advantage and drive forward the development of the hydrogen economy. The collaboration with Christiane Zurl from Invest Region Leipzig has already resulted in synergies and will help to drive projects forward. In June, we attended the EES in Munich together and, as part of Invest Region Leipzig's consultations with companies interested in setting up in Leipzig, new and interesting contacts were made on all sides.

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With a clear vision, committed partnerships and the necessary political support, the Leipzig region can play a pioneering role in the ramp-up of the hydrogen economy. Hypos e.V. and the hydrogen scout Andreas Bauer are making a decisive contribution to driving development forward and establishing a sustainable hydrogen economy. We would like to thank Mr Bauer for the interview!